Commercial construction experienced continued growth in Q2 of 2022 despite mounting economic uncertainty, according to a new quarterly report from Dodge Construction Network released today.
The report, titled Momentum Amid Uncertainty: Dodge Construction Network Q2 Report, reflects on the industry’s growth, broader economic trends impacting the construction economy across Q2 2022 and how the sector is weathering those challenges.
Construction’s Future Contingent on Two Assumptions
In the report, Richard Branch, chief economist at Dodge Construction Network, states that for improved growth in commercial construction, three major trends must continue: decreased pandemic impact and successful inflation mitigation.
Commercial construction has continued to weather the challenges posed by the COVID-19 pandemic. However, worker shortages, shifted safety standards and expectations, and increased materials costs are beginning to fade as hurdles, a welcome reprieve from a difficult period for the industry.
The U.S. economy must stay contained for successful construction growth. The Federal Reserve indicated consumer price inflation rose from 5.8 percent in December of 2021 to 6.3 percent in April—the highest increase since the early 1980s.
“What’s worse than high inflation and low unemployment is high inflation and a recession with millions of people out of work,” says Branch. “The federal government is tasked with striking a delicate balance here.”
Infrastructure and Broadband Access
The report found that infrastructure remains a positive area within the US construction sector as funding from the Infrastructure Investment and Jobs Act (IIJA) enters the market. Current data doesn’t yet show an immediate impact, but the positive trends and innovation from this funding will likely be more apparent in the immediate future.
One of the most important applications of the IIJA is expanded broadband access. Beyond its benefit to everyday Americans, the report finds that this improved access can have an enormous impact on rural construction firms. Historically, construction has struggled to evolve its technology. Much of the impressive technology available has only been accessible to large firms — this broader broadband access will address that deficiency.
“This technology is critical to increasing productivity by way of efficiency and improving safety and onsite operations,” says Branch. “It’s a welcome addition to the commercial construction infrastructure — connecting firms to one another in new and innovative ways.”
To learn more about the economic benefits and implications across Q2 2022 and what it means for the future of the construction economy, download Momentum Amid Uncertainty: Dodge Construction Network Q2 Report from Dodge Construction Network here.